• After Snap (SNAP, $7.76) shared its third-quarter earnings on Thursday, its shares plunged by 30% on Friday. Not only has investor confidence dipped after seeing a $1.13B revenue instead of the projected $1.14B, but Snap’s shares are also trading at their lowest since February 2019.
• Snapchat’s parent company announced in August, that it would lay off 20% of the workforce as a part of its capital restructuring plan. The hit to its revenue is due to Apple’s (AAPL, $147.27) 2021 privacy update to iOS. It limits Snap’s potential to track user activity, which drove its online advertising business. Additionally, the economic slump and looming recession have stimulated advertisers to limit spending on their online campaigns.